Patrick is a Ugandan Entrepreneur, acclaimed film maker and Ad-man, whose company Xibra, markets mobile platform solutions and provides creative communication services.
He has worked with leading brands like Google, MTN Uganda and South African Tourism Board. Patrick's writing brings a fresh new perspective to Technology, marketing and secrets to success
This blog is inspired by the numerous walks he take to the kiosk (Duuka).

Tuesday, April 5, 2016

I have gone broke twice in my career so far, it’s something
that happens quit often to entrepreneurs because we have a bad habit of taking
on huge risks that usually involve investing all we have into something and
even sometimes borrowing a little more on the side.

My real first experience of living on almost nothing was
right after university when I left home to pursue my dreams. At that time, I was
by no means ready to be on my own and a couple of months at home would have
been the best play but for some reason I was too excited about the idea of
going out in the world to find my place. With only a laptop and $5 I bid my
parents farewell and set off on my way.

I spent the following three months sleeping on a friends
couch as I worked my ass off to establish my first media company Carlos &
Patrick. During this period, I religiously lived on a simple diet of Kikomado (chapatti
& beans) with a glass of water. Breakfast, lunch and supper. I remember one
time having only ugx 1000 (20 cents) and I had to choose between purchasing a jerry
can of water for ugx 200 but then that would leave me short of buying a meal. I thought about it for
two hours until I decided that I really needed that shower.

When I look back at these experiences, I realize that,
dreadful though they were, they taught me invaluable lessons about money and
life and if I had to, I’d do it all over again. These are some of the lessons I
learnt.

Money makes money

Cash is king and if you do not have it, you cannot make more
of it, which is why the richer get richer, because they have the money to
invest. Establish different sources of cash flows, that way there is always
money coming in from somewhere. Also be smart with your money, learn to save.

Pursue wealth not just riches

Being rich is great but being wealthier is better because it’s
a more holistic approach to building an empire. Wealth emphases monetary value,
social capital (people) and assets.
The second time I experienced a period of being broke was when I quit my job in
2014. The reason was twofold; jump back into self-employment and to reconnect
with my parents with whom I hoped to smooth things over with (things hadn’t ended
well when I left home after college).
Soon after moving back home, it did not take long for my savings to start drying
up while the clients I had hoped to work with stood me up. My projections where
in the gutter. That December 2014, I was hit with more bad news; my kidneys
were failing. I was unemployed so I didn’t have medical coverage. Spending the
last of my savings, I saw specialists, run tests as the condition accelerated.

Mid December found me admitted in the run down Mulago
hospital, helplessly fighting for my life. It was a dark time and at that
point, even though I did not have a penny to my name, family and friends stood
by my side through it all. It was a humbling experience to witness first hand
how other people pour love and happiness into our lives making us a much richer
version of ourselves. However this was only possible because with my free time
earlier that year, I had spent it reconnecting with the people in my life and
actually building bonds, that way when I was in need, they were there for me,
not so much because they owed me anything but rather because I took the time to
invest in these relationships. Build wealth not just riches.

Money should move forward not backwards

The question is not whether the money you currently have
will be spent or not because it will but rather, what it is spent on will make
the world of difference. Spend your money in such a way that it will pay
returns in future also known as investment. For example, if you have $50 in
your wallet and you happen to be hungry yet at the same time you need to make
business cards. From an investment point of view, making business cards is a
better expenditure because it is likely to yield returns in form of business
while eating might satisfy a preexisting need, it does not send your money into
the future where it will yield returns.

Manage the debt burden/risk

Every decent human being at some point accumulate debts and
if you are broke, there is a 90% chance you owe some people money. At first,
the thought that you do not have the money to pay your debts will drive you
insane which might force you to make promises you cannot keep. Take time off to
access your situation and during this period, do not take on any new debts as
you think of a plan to pay back those you owe. The other amateur mistake is
trying to pay back all your debts at once, leaving you broke once again. It’s important
to come up with a payment plan to reduce your debts and whatever money you get,
decide the percentage that will go towards paying arrears and that which is for
investment. Remember money makes money and it should always be moving forward.